Go Back   Team-BHP > BHP India > Team-BHP Reviews > Indian Car Loans & Insurance


Reply
 
Thread Tools Search this Thread
Old 25th February 2014, 11:12   #16
Distinguished - BHPian
 
Sahil's Avatar
 
Join Date: May 2004
Location: Bombay
Posts: 5,202
Thanked: 2,094 Times
Default re: Insurance premium higher for 'existing' customer than 'new'

Another new gimmick started, atleast by Tata AIG is the trick to eat up your NCB benefits.

In my case I have 65% NCB hence I always take the NCB protection plan to retain it. This has saved me a good amount over the years as I have transferred the policy over several cars that I have bought and sold.
Now, Tata AIG says that I will get the discount on my current policy as per the 65% NCB however NCB will not be shown separately in the policy, instead it will be adjusted as discount. While I get the benefit on my current policy, I will not be able to transfer it to my next car as it is now inbuilt in the discount structure and not as an NCB written on policy.

This is highly unfair. I had no choice but to renew for now but I am going to fight it out when I need to transfer it to my next car.

Anyone else facing a similar issue?
Sahil is offline   (1) Thanks Reply With Quote
Old 25th February 2014, 12:38   #17
Distinguished - BHPian
 
swiftnfurious's Avatar
 
Join Date: Sep 2009
Location: Chennai
Posts: 6,448
Thanked: 6,428 Times
Default re: Insurance premium higher for 'existing' customer than 'new'

Quote:
Originally Posted by Sahil View Post
....Now, Tata AIG says that I will get the discount on my current policy as per the 65% NCB however NCB will not be shown separately in the policy, instead it will be adjusted as discount. While I get the benefit on my current policy, I will not be able to transfer it to my next car as it is now inbuilt in the discount structure and not as an NCB written on policy.

This is highly unfair. I had no choice but to renew for now but I am going to fight it out when I need to transfer it to my next car.

Anyone else facing a similar issue?
Curious - Why do you plan to stick to this provider? And there will be too many if's & but's later. Unless you have time to sort it out, you might finally lose the benefit itself. I think it's better to spend some time on this now and sort it out for better.
swiftnfurious is offline   Reply With Quote
Old 25th February 2014, 12:48   #18
Distinguished - BHPian
 
Sahil's Avatar
 
Join Date: May 2004
Location: Bombay
Posts: 5,202
Thanked: 2,094 Times
Default re: Insurance premium higher for 'existing' customer than 'new'

Quote:
Originally Posted by swiftnfurious View Post
Curious - Why do you plan to stick to this provider? And there will be too many if's & but's later. Unless you have time to sort it out, you might finally lose the benefit itself. I think it's better to spend some time on this now and sort it out for better.
I figured this right as I was signing the cheque for renewal, my policy was expiring next day. At that point I didn't have much choice as the rates I get from Tata AIG are far better than others. Also, they have been easy to deal with in the past for claims etc.

Most of our company insurance is also done via TATA AIG which helps in better customer service and rates given to us.
Sahil is offline   Reply With Quote
Old 25th February 2014, 14:13   #19
BHPian
 
Join Date: Feb 2008
Location: Pune
Posts: 344
Thanked: 56 Times
Default re: Insurance premium higher for 'existing' customer than 'new'

Is there any insurance provider other than Tata AIG that offers NCB protection?
alto99 is offline   Reply With Quote
Old 25th February 2014, 15:35   #20
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,039
Thanked: 2,075 Times
Smile re: Insurance premium higher for 'existing' customer than 'new'

Quote:
Originally Posted by alto99 View Post
Is there any insurance provider other than Tata AIG that offers NCB protection?
Apart from Tata AIG, Future Generali, Bharati Axa, HDFC Ergo, Iffco Tokio, L&T do offer NCB protection add on cover along with the normal policy. This is based on the information available on the Insurance co websites.The finer print needs to be read as to how much claims are admissible under this add on cover.
ghodlur is offline   (2) Thanks Reply With Quote
Old 25th February 2014, 23:38   #21
Senior - BHPian
 
vnabhi's Avatar
 
Join Date: May 2007
Location: DC -> DC
Posts: 5,265
Thanked: 1,233 Times
Default Re: Insurance premium higher for 'existing' customer than 'new'

Nice thread, really an eye opener! But how come some people are talking about 65% NCB. I never got more than 50% on my 12-year old WagonR that has no claims so far?

My provider is Bajaj Allianz for the past 6 years.
vnabhi is offline   Reply With Quote
Old 26th February 2014, 08:19   #22
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,039
Thanked: 2,075 Times
Smile Re: Insurance premium higher for 'existing' customer than 'new'

Quote:
Originally Posted by vnabhi View Post
Nice thread, really an eye opener! But how come some people are talking about 65% NCB. I never got more than 50% on my 12-year old WagonR that has no claims so far?
Venu Sir,

This is because of the sunset clause when it comes to NCB. Details given below:

Quote:
Sunset Clause: If at the renewal falling due any time between 1st July 2002 and 30th June 2003, both days inclusive, (after completion of the full policy period of 12 months) an insured becomes entitled to an NCB of 55% or 65% in terms of the Tariff prevailing prior to 1st July 2002, the entitlement of such higher percentage of NCB will remain protected for all subsequent renewals till a claim arises under the policy, in which case the NCB will revert to „Nil‟ at the next renewal
ghodlur is offline   (1) Thanks Reply With Quote
Old 26th February 2014, 10:42   #23
Senior - BHPian
 
vnabhi's Avatar
 
Join Date: May 2007
Location: DC -> DC
Posts: 5,265
Thanked: 1,233 Times
Default Re: Insurance premium higher for 'existing' customer than 'new'

Quote:
Originally Posted by ghodlur View Post
Venu Sir,

This is because of the sunset clause when it comes to NCB. Details given below:
Thanks for the clarification. But my car's first renewal of insurance was in July 2002, so would I be eligible? Or is that only if I were already in the 55% NCB zone at that point of time?
vnabhi is offline   Reply With Quote
Old 26th February 2014, 23:34   #24
BHPian
 
nettooran's Avatar
 
Join Date: May 2012
Location: Cochin
Posts: 102
Thanked: 112 Times
Default Re: Insurance premium higher for 'existing' customer than 'new'

I had insurance from ICICI lombard . My first year premium was Rs 16,400 and second year , it showed me Rs.13500 with bonus. If I was to pay online I could get it for Rs.12800. Eventually I called up a local agent for ICICI and got a quote for Rs 10,400.

I guess going though agents bring you the maximum gain.
nettooran is offline   Reply With Quote
Old 27th February 2014, 12:54   #25
BHPian
 
arjithin's Avatar
 
Join Date: Aug 2011
Location: BGLR/Chalakudy
Posts: 869
Thanked: 1,008 Times
Default Re: Insurance premium higher for 'existing' customer than 'new'

Same experience with Royal Sundaram, but was able to convince their customer support team to renew my existing policy at the price for a new customer. It took 3 calls to them to get the Rs 400 savings.

Additional issue with Royal Sundaram is that Once the policy is started, the customer will not have any option to choose IDV; but for a new customer, they give the option to choose +/-15% of what they call IDV based on market value.
arjithin is offline   Reply With Quote
Old 27th February 2014, 14:13   #26
Senior - BHPian
 
aniketi's Avatar
 
Join Date: Sep 2009
Location: Pune
Posts: 1,270
Thanked: 711 Times
Default Re: Insurance premium higher for 'existing' customer than 'new'

Sad but true. Its same for Home Loans as well, for existing customers its high rate but for new ones, its lower. I already had a fight with HDFC guy's on this, but of no use. Its the hard reality. All rules are in favor of the company only and not for the customers, that's the sad part :(
aniketi is offline   Reply With Quote
Old 27th February 2014, 16:08   #27
F50
Senior - BHPian
 
F50's Avatar
 
Join Date: Mar 2004
Location: Mumbai/USA
Posts: 1,694
Thanked: 91 Times
Default Re: Insurance premium higher for 'existing' customer than 'new'

Quote:
Originally Posted by interest View Post
On the website you can continue as "existing customer" or a "new customer".
General Insurance is renewed annually so its not a marriage, its not permanent. Heck even marriages are (never) permanent these days then what to expect from something which you are buying online.

The whole thing works the following way:

You log on to the site for the first time hence new customer. To attract customers, discount is the best bait. Sadly in India, no one cares about coverages its all about money.

Lets take an example of VW Vento here. You are getting 35% Discount from two companies (incl existing) and third will offer you 50% and you seal the deal. Now, you become existing customer for the company. The company goes through bad claim phase for Ventos all over Western Region. So the company decides to reduces the maximum possible discount for Vento to 35%.

Your renewal is up for due, all the existing customers of Vento including you are offered 35% discount due to high claim ratio. High claim ratio, higher discounts, management costs, inflation etc means they are not going to earn anything from your proposal. Nor they did much last year (remember 50% best deal in the market?) But still the difference in premium posted by bhpians are very alarming. Btw, Vento & Polo currently tops the chart for high claim ratio.

Im bit surprised that well-known old players like Bajaj Allianz & Tata AIG are into this as well. AFAIK, the discounts on their renewal are not changed at all. When call centers are involved there has to be a bit of mis-selling involved. Few companies might be doing this on purpose but I can't comment on that. If you hear horror stories of buying online Life Insurance then you'll embrace General Insurance companies with open arms.

Lets just think from company's point of view, if the customers are not loyal to the them how can company be loyal to them. Companies are aware that online selling means most of the customers are not fixed. So they would also want to maximize their profit from one deal itself.

I have not seen such cases, ever, in offline insurance.


Quote:
Originally Posted by Sahil View Post
Now, Tata AIG says that I will get the discount on my current policy as per the 65% NCB however NCB will not be shown separately in the policy, instead it will be adjusted as discount. While I get the benefit on my current policy, I will not be able to transfer it to my next car as it is now inbuilt in the discount structure and not as an NCB written on policy.
This absolutely shocking, there is no way they can swallow your 65% NCB. You can write to IRDA about it.
F50 is offline   (1) Thanks Reply With Quote
Old 27th February 2014, 21:59   #28
BHPian
 
Join Date: Jul 2005
Location: Chennai
Posts: 703
Thanked: 46 Times
Default Re: Insurance premium higher for 'existing' customer than 'new'

It happened with me last year when I had to renew insurance for my Vento. Bajaj Allianz (existing customer) was not willing to reduce any further and they quoted nearly 30,000 for bumper to bumper and 24000 for comprehensive. Bharti Axa quoted 21000 and I went for it. My observations:

1. Insurance agents are tricky guys, they will reduce the quote at will but have hidden items like removing certain cover or waiving off up front but later take it from you when you go for a claim as claim excess.
2. End point agents have lot of items to shuffle and they cant trick you easily.
3. I asked for several revised quotes with Bharti Axa, Bajaj Allianz and Policy Bazaar
4. Points to note are IDV, accident cover for self, paid driver, occupants (each Rs.250 for 1 lakh cover as per norms), depreciation cover (Comes as special added cost)
5. Once your number goes out you will get calls like crazy especially from Policybazaar, be prepared for that.

One of the quotes I got, in attachment.
Attached Images
 
LandCruiser is offline   Reply With Quote
Old 27th February 2014, 23:09   #29
BHPian
 
mksureshhere's Avatar
 
Join Date: May 2013
Location: Bangalore
Posts: 34
Thanked: 42 Times
Default Re: Insurance premium higher for 'existing' customer than 'new'

Hey Guys,

When I bought my car, my insurance partner was Bajaj Alliance and I paid close to 34K (that was the price for my laziness to look out for a good deal).

Firstly, the "new customer" discount is something that an insurance company offers, to attract "new customers" which one would not be entitled for when you are an "existing customer". This is the difference which you see when you get the quote as "new customer" or "existing customer"

Secondly, there are different kind/ level of discounts that the agent can get to a customer. Means, if the tariff discount to be given is as high as 50%, then it needs to be approved from Regional office. If it's more than that, then, the approval goes till head office. The figures mentioned above are indicative and not actuals.

I could make use of one of my relative who is in a senior position in an insurance company and got a considerable discount for Nil Depreciation Policy and below is what I paid.

First year renewal - 18500 (NCB+New customer tariff discount+Additional tariff discount approved from Regional office)
Second year Renewal - 16600 (NCB+Additional tariff discount approved from Regional office)

Thanks,
mksureshhere
mksureshhere is offline   Reply With Quote
Old 28th February 2014, 08:24   #30
BHPian
 
infotech58's Avatar
 
Join Date: Dec 2009
Location: Toronto
Posts: 629
Thanked: 217 Times
Default Re: Insurance premium higher for 'existing' customer than 'new'

This happened with me too. Royal Sundram quoted me almost 10-12% more upon renewal when I was expecting some kind of discount for no-claim and reduced IDV.
infotech58 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Indian Railways: Premium Train Fare higher than a Flight! Soumyajit9 Shifting gears 47 4th March 2016 00:12
Why do bikes rev higher than cars? paras211 Technical Stuff 14 19th July 2011 12:03
Higher premium for Traffic Violations - Chennai bnzjon The Indian Car Scene 27 20th July 2010 21:35
Lpg Higher Octane Than Petrol?? amitshah Technical Stuff 7 14th January 2007 16:09


All times are GMT +5.5. The time now is 06:20.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks